Bill > H5235

This bill introduces an interest rate cap specifically for medical debt in Rhode Island, defining medical debt as any outstanding amount owed to a healthcare facility or professional for healthcare services, products, or devices. The bill limits the interest rate on such debt to a flexible range tied to the weekly average one-year constant maturity Treasury yield published by the Federal Reserve, with a minimum of 1.5% per annum and a maximum of 4% per annum. The specific interest rate will be based on the Treasury yield from the calendar week preceding the initial billing date. Importantly, this interest rate cap will only apply to new medical debt incurred after the bill's effective date, meaning existing medical debt will not be retroactively subject to the new rate limitations. The bill is designed to provide consumers with more predictable and potentially lower interest charges on medical bills, offering some financial protection against potentially high-interest medical debt. The legislation will take effect immediately upon its passage by the Rhode Island General Assembly.

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